What is the purpose of the Expense Reduction Analysts Receipts included in the FDD?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
CliftonLarsonAllen LLP CLAconnect.com
INDEPENDENT AUDITORS' REPORT
Board of Directors Expense Reduction Analysts, Inc. and Subsidiaries Addison, Texas
Report on the Audit of the Financial Statements Opinion
We have audited the accompanying consolidated financial statements of Expense Reduction Analysts, Inc. and subsidiaries, which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Expense Reduction Analysts, Inc. and subsidiaries as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the consolidated Financial Statements section of our report. We are required to be independent of Expense Reduction Analysts, Inc. and subsidiaries and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Expense Reduction Analysts, Inc. and subsidiaries' ability to continue as a going concern for one year after the date the financial statements are available to be issued.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts Franchise Disclosure Document, Item 23 is titled RECEIPTS and contains an image. The receipts are related to the consolidated financial statements of Expense Reduction Analysts, Inc. and its subsidiaries. These statements include the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements. These financial statements offer a view of the company's financial position and performance over those periods.
The inclusion of these financial statements, along with the independent auditor's report from CliftonLarsonAllen LLP, aims to provide prospective franchisees with reasonable assurance that the financial statements are presented fairly and in accordance with accounting principles generally accepted in the United States of America (GAAP). The auditors' report confirms that the audit was conducted following generally accepted auditing standards (GAAS), which involves assessing the risks of material misstatement, examining evidence, and evaluating the appropriateness of accounting policies and estimates.
Management is responsible for the preparation and fair presentation of these financial statements, including the implementation and maintenance of internal controls. They must also evaluate whether there are conditions or events that raise substantial doubt about Expense Reduction Analysts' ability to continue as a going concern for one year after the statements are issued. The auditors' role is to provide an independent opinion on whether the financial statements are free from material misstatement, whether due to fraud or error, offering a level of assurance to potential investors and franchisees.